Why Commercial Entities Should Embrace Open Access Solar Projects

By Shreyas Gowda, SVP- Sales & Operations, Oorjan Cleantech

Commercial entities stand to gain immensely from open access solar projects, which enable businesses to procure renewable energy directly from generators without relying on costly distribution companies. These projects allow firms to sign power purchase agreements (PPAs) with solar developers, bypassing traditional grid monopolies and securing electricity at rates often 20-30% lower than conventional sources over the long term. By leveraging open access regulations in markets like India, companies achieve energy independence, shielding themselves from volatile fossil fuel prices and ensuring stable operational costs.
Regulatory Support and Scalability
Governments worldwide, particularly in renewable-rich regions, have streamlined open access policies to accelerate clean energy adoption. In India, for instance, amendments to the Electricity Act facilitate cross-border and intra-state solar procurement, with wheeling charges minimized to make third-party solar viable for industries. Commercial entities benefit from scalable solutions: rooftop or ground-mounted solar farms tailored to load profiles, delivering megawatts of power without upfront capital outlay through developer-financed models. This flexibility suits manufacturing hubs, data centers, and retail chains seeking to match peak demand with reliable solar output.
Environmental Compliance and ESG Advantages
Open access solar directly addresses escalating sustainability mandates, helping businesses meet net-zero targets and comply with regulations like the EU's Carbon Border Adjustment Mechanism or India's Perform, Achieve, and Trade scheme. By sourcing 100% renewable energy, firms slash Scope 2 emissions, earning green certifications that enhance corporate reputation. Investors increasingly prioritize ESG-compliant portfolios, with solar adopters reporting higher valuations and easier access to green bonds. This positions forward-thinking entities as industry leaders in a low-carbon economy.
Risk Mitigation and Operational Resilience
Unlike captive solar limited to self-consumption, open access allows surplus energy banking and trading, optimizing utilization across multiple sites. Advanced forecasting and smart metering minimize curtailment risks, while diversified solar portfolios hedge against weather variability. During grid outages or shortages, open access ensures priority supply, bolstering business continuity for critical operations. Financially, PPAs lock in tariffs for 15-25 years, providing predictable budgeting amid rising conventional power costs influenced by global events.
Long-Term Strategic Edge
Adopting open access solar future-proofs commercial operations against policy shifts toward renewables and rising compliance penalties. It fosters innovation, such as integrating battery storage for round-the-clock power, and attracts talent valuing sustainable workplaces. Case studies from Indian textile and IT sectors show payback periods under five years, with internal rates of return exceeding 12%. Ultimately, open access solar transforms energy from a cost center into a competitive advantage, driving profitability while stewarding the planet.
In a renewables-dominated future, commercial entities ignoring open access solar risk obsolescence. Proactive adoption delivers immediate savings, regulatory alignment, and enduring resilience.
(VIews are personal)